Be coffee-rich in Russia this season Published on: January 05 2011 14:00 GMT

Be coffee-rich in Russia this season
Published on: January 05 2011 14:00 GMT


By Irina Loseva

Coffee is rapidly gaining popularity in Russia. The number of cafes and coffee houses in the cities of the country continues to grow. Coffee houses are currently the most profitable institutions in the area of contemporary catering. They bring no less than 30% revenue, and the demand has only grown over the years. Running a coffee shop has become a profitable business.

Russians are now happy to spend their time in cafes, both for personal and business meetings. Cafes today are not just a segment of the food establishments, but rather a defined subculture and lifestyle.

The degree of relevance of such institutions is testified by the fact that the number of places where people can have a cup of coffee has been increasing over the years. People are willing to save on food, but not a refreshing cup of coffee in the morning. They are ready to pay much more than its cost for a cup of espresso in a coffee shop.

Analysts believe that profit margin of specialized stores exceeds 600%, while the revenue is approximately 30%, which makes a business of this kind very attractive. On average, a regular coffee shop pays for itself in two to three years.

However, those who are planning to open a coffee shop should keep in mind that they would need to try to sell at least one hundred seventy cups a day, and more than five thousand a month. This could be difficult to achieve. Yet, it is necessary to cover the rent expenses and make profit, wrote exrert-coffee.ru

One option of a small business is a coffee shop on wheels. This idea was borrowed from British entrepreneurs. Mobile coffee shops in Russia and Ukraine have quickly found their niche in the market and one can always see a line near a vehicle with a coffee machine.

Usually, the expenses are limited to the parking fees, purchasing of a coffee machine and products. Mobile coffee houses are often completely autonomous and do not need electricity and water, said Invest Gazeta.

Coffee vending machines are also considered a profitable vending business. In practice, the machines still require attention which involves careful selection of technology, search for appropriate location and maintenance issues.

Nevertheless coffee vending machines operate without a license and a selling assistant, do not require daily inspection and, if the location is good, generate steady income and pay off within six months to two years.

According to experts, to turn the vending business into a full-on operation, one needs to build a chain of at least four machines, simultaneously providing natural and instant coffee and properly locating them in profitable areas - schools, service stations, hair salons, office and shopping centers, airports and train stations. Ideally, there would be a power socket near a coffee vending machine, and even better if there are sofas or chairs.

The range of drinks is chosen depending on the location of the machine and the target audience. In offices and shopping malls, where the client is focused on high quality, the machines that run on natural coffee beans should be located. According to Bishelp.ru, most popular drinks now are coffee (espresso, Americano, cappuccino), tea, hot chocolate and milk.

In general, any of these options can bring fairly good financial results within reasonable time. An illustration of this is the ever-expanding chain of "Chocolate" and "Coffee House." Both companies are actively increasing their presence in other cities across the country, apart from Moscow and St. Petersburg. Coffee houses have become a very profitable business and will in the future bring a lot of money to the owners.

Original Article